my mission is simple, to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i just want to make some money. my job is not to just to entertain you but i'm trying to educate you. so call me at 1-800-743-cnbc. why the heck is everyone so political? why do i have to hear all today what a buffoon ben bernanke was

to not cut back on the federal reserve's quantitative easing. this chatter permeated almost every single moment of today's session. so in the interest of trying to help you make money, did you hear that, make money, as opposed to trying to force feed you some political nonsense about what bernanke should have done if he had half a brain and, yes, the commentary at that time, at many points today was that ugly. >> boo! >> let me give you a check list of what matters to the stock market and what doesn't because that's what we're about. first of all what matters is the future, not the past. one of the chief criticisms i heard today was that given how strong the data has been today, hiring, very good housing statistics, what the heck is bernanke doing by not trying to get the federal reserve out of this ridiculous bond buying program. this is an unacceptable and foolish, lacking in rigor, line of thought. i want you to ponder for a moment, just ponder the notion that ben bernanke, instead of

running the fed, runs a huge retailer. i want you to thin like a retail analyst for a moment. try to figure out how ben bernanke is doing. would you after listening to him yesterday raise numbers for the quarter or lower them? i think the answer is pretty darn easy. i think you would slash retail numbers in the fourth quarter. why? because suddenly the future has become worrisome with the impending government shutdown, it will get worse. i kid you not. the government default and downgrade could be creeping into the vernacular. bernanke is a student of history. he doesn't care who will cause the shutdown. he's not political. he just knows that the economy folded during the 1995-96 shutdown as all government services were cut back instantly. so he knows speaker boehner has adopted the policy of the president and there's no doubt about it.

we will reprise, enduring a war similar to the clinton/gingrich debacle the market diminished. as he headed slowly back to academia would be, what was that bozo the clown thinking? how could he have tapered knowing what lay ahead? many people tell me that bernanke has misjudged how strong the economy is and that the stock market which is hitting new highs yesterday knew much more than he does. why should we believe that, people? we've had severe declines going to every single one of these government fiascos. the debt downgrade, fiscal cliff, sequester. in every case no one thought they would be as bad or as paralyzing as they were. in every single case people told us to start buying stocks right when they started. i did not because i think these are hideous things. i bet the collective market is as naive now as those other times. i think it would be nice to know

that the fed had our backs in the next couple of weeks. he knows the shutdown could destroy confidence and shut down businesses. he did not put them at risk or anything like that gibberish i heard all day. he simply saved housing from rolling over which is what looked to be happening at the end of august when the last of the low mortgage interest rate opportunities occurred. he doesn't want to end it when we're still only building a third of the homes that we were building before the great recession. isn't that incredible, people? i think it is amazing that with a few words bernanke was able to knock off a quarter percent of the mortgage rate. isn't that what we want? i regard that as a win, not a loss. where is the problem with that? more important, there's this no credibility issue here. that was another canard. just the opposite. if the fed had no credibility, the rates wouldn't have had

their biggest one day drop in two years courtesy of a couple of comments from this man. you know what that is? that's huge credibility. talk to the hedge fund managers that were short bonds right into this magnificent rally, betting against bernanke. oh, yeah. they now know that bernanke has both power and credibility. they lost their whole year yesterday, slapped them upside the head by the mean whamma jamma that is the fed chief, although they probably didn't call him that when he was the head of princeton. you heard that rap. the fed will never stop bond buying. we'll never stop quantitative easing. these people, what script is that? send me that script. is it from "the office?" let me tell you how stupid it is. we've heard that same, the fed's reckless, can't stop and it's risking the republic. i heard that. the republic is on the line. one republic. these people who express this view, they took you out of the market thousands and thousands of dow points ago. remember where i'm coming from. i'm trying to help you make money.

those people have lost you money. if the fed were trying to pull the plug, you know what? it could do it. the dow would drop 2,000, maybe 3,000 points. you'd still be ahead of where these jokers pulled you out because of politics. finally, we had good data. the data is anything but firm, frankly. what's the point of tapering when walmart, target, macy's, nordstrom's, pvh, ralph lauren, and now pier one say things have gotten rocky of late. how is that reassuring? pier one actually says it's our fault. the other guys, they all said the same thing. it was the economy. it is true that overseas is strong and getting stronger. companies that deal with international markets like the big industrials that we hear more about later in the show, they aren't getting their tailwind from the united states. they're getting it from china, brazil, russia, mexico, and canada. they're coming back. remember it's always about earnings on "mad money." think about home depot.

the company does very well when the domestic, not international, but domestic economy is humming. home depot has been soaring ever since the bottom of the great recession, but it ran into a brick wall when it reported a month ago. the stock dropped almost 10% because smart investors were able to see that this was the last good quarter for home depot, given the sudden and sickening climb in rates. you need to know what the fed had to do to take action like that. the fed needed to reverse the course of that stuff. it is the barometer of the course of spending. the fact that he was able to get them back from 78 to 72 is a sign that he got a chance to get the sector going. i'm being proverbial, not literal. that's the impact of what he's saying on the stock. it's really -- remember, we could have the possibility of a really ugly government shutdown, you're not going to be shopping at home depot. that could shave millions and millions in the upcoming quarter including home depot.

should tesla have soared on comments from analysts? that's the sort of bubble action not to be frowned upon. i told you it's a cold stock. that means it could go up for a long time. should pandora have gone up 7 points in the last week to week and a half? that's more super bullish activity as could of course the giant run in gold which i constantly say should be your partnership. but the bottom line is this, complainers, the grousers, they think with political hats on, not financial hats. they want to wax on how the fed is wrong, to do this or that, and it should be tougher, less accomodating. me, i have a simple litmus test. do i have a different following? do i think things will improve because of bernanke's actions? you bet i do. but then again, i'm not trying to win you over to my point of view. i'm not trying to lose you money. i am simply trying to help you make money. jonathan in florida, please, jonathan.

>> caller: boo-yah. how's it going, jim? >> real good, jonathan. how about you? >> caller: i'm doing really well. i was just wondering about sony. i'm wondering if you think they're starting a big turnaround. >> i happen to like the japanese market. i don't want to single out sony although i know dan loeb says it's worth a lot. my trust has a position in a japanese etf, that's what i want you to play if you think japan is turning as i think i do. mark in ohio. >> caller: we just got through our day of atonement. have you atoned for all the sins you made with your incorrect -- any incorrect picks you might have made from last year? >> i'm the only one that does the atonement show so i don't know about the other guys. >> caller: okay. mcdonald's just raised their dividend.

would i be better off buying mcdonald's, or since they went into the chicken wing business should i buy into that? >> no, that's grain cost issue, tyson foods. mcdonald's is just doing it as a promotion. we don't know if they're going to stick with it. sally smith of buffalo wild wings said they're not really the mover in chicken wings. put on your financial hat. you'll feel better. "mad money" will be right back. coming up, peer pressure. shares of retailer pier one are under water today after a weak report caused a steep sale on wall street. is this your chance to buy at a discount before the holiday season, or should it be left on clearance? find out in cramer's exclusive. and later, best for the rest. cramer's been offering up the best stocks for the rest of 2013 all week, and tonight he's taking to the skies. it's a group of stocks that's been flying this year. but which ones will continue to the stratosphere?

plus, changing the game. new jersey is breaking new ground in the online gambling arena. as the odds are tipped in the favor of new companies, which players could hit the jackpot? cramer checks in with the ceo of international game technology, just ahead. all coming up on "mad money."

how tough has the huge spike in mortgage rates been for the housing-related retail names? hey, come on. that's one of the big questions we've been opining all day on "mad money." pier one with over a thousand stores has gone through a monumental turn around since the financial crisis thanks to the

ceo alex smith. just this morning they reported and this well run company reported a rare miss, 4 cents lower than expected. to make things even tougher, pier one lowered its guidance 13%. we've got to figure out what's going on. how much is decelerated housing? they didn't say anything about that. they said, no, it's all on us. so let's check in with alex smith, the president and ceo of pier 1 imports and someone who has made a lot of money and find out what's going on with his company and what's going to happen next. welcome back to "mad money." >> jim, thank you for asking me back. glad to be here. >> when i saw the number, i, unlike you, wanted to say some of this had to be because of regional weaknesses in the economy because of the spike in rates. you're just not that bad, man. >> thanks for saying that, jim. here's the thing.

when we looked at how we executed our store business in the quarter, we're really not very happy and we know we made some mistakes, and until i can say that we executed flawlessly, i'm not about to blame outside forces. so that's really just how we think of pier 1 imports. we've got to get our own house in order here. >> well, some of the best merchants said the same thing to me, without blaming themselves, that traffic was soft in july. why can't you just say that in the country traffic was soft, because i know you say it's a fragmented industry, but the truth is, sir, that no one -- we had the largest shopping center guy in here yesterday. no one had good traffic in july. why should you have had good traffic? >> it's back to this whole sort of market share conversation, jim, that you and i have had before. we are such a small percentage of a very large and fragmented industry that we believe in our hearts of hearts that even when

the external environment is tough, we should be able to transcend that somewhat, so that's my only point in all of this. we see the numbers the way everybody else does. we know what's going on. as i say, our mindset is just -- we've got to fix what we can fix. >> alex, why did you cut back in retrospect, obviously wrong, why did you cut back on ad spend? were you that confident that things were better in the country or your lineup was better? >> you know, jim, i think what happened is we got really very overexcited and over-enamored with where we were going with our online business and we were all very focused with building out that business, and so our marketing was more geared toward branding traffic to our website

real estate than driving it to our stores. in the cold gray light of morning that seems like not a smart decision. >> you're increasing your tv presence by a rather remarkable percent. as you mentioned, tv spots. will this do it? >> well, we starting tv at the beginning of september. it runs all the way through christmas with increasing rates as we get near to the holiday season. so some new holiday ads to come on in november. so we're pretty optimistic that that increased tv waiting is that increased tv waiting is going to help, and as i said on the call this morning for the first time in many years we're going to be back on network tv which is great for us. >> now, you did mention that there were some regional areas that were better and soft. what was going on in that part of the country? >> we were very disappointed in the northeast.

it's a huge, huge market for us. we've certainly seen traffic in that part of the world incrementally less strong than in other parts of the country. >> the northeast. see, i would have -- i know you did some remodeling in boston. i mean is it the look and feel of those stores any different from the rest of the country, or is that just some sort of funk that you can identify? >> i can't give you any finite reasons without starting to blame outside influences. >> one last question. you know i go to your store every halloween. that's where we get all your stuff. was there anything with your actual merchandise selection and is this merchandise selection meeting what the public wants right now? >> oh, we're really, really comfortable in our assortments and i'm sure you've seen our halloween and harvest.

it's certainly resonating. we think we're really good at the whole holiday seasonal piece, and so we're confident about those. so, no. the other thing i would say is that although the traffic has been light, jim, the customers who have been into our stores, our conversion rates on our average ticket and units per transaction rates all have been very strong. so it's not a question of any rejection of what we're putting in front of the customers. it's just not enough people in the stores in this second quarter. >> well, look. thank you for your candor. there were many people who i felt did miss the market, didn't have the right merchandise and just said it was interest rates. you're a candid man and that's one of the reasons you've made so much money for people. alex smith, president and ceo of pier 1 imports. thanks for coming on the show. >> thanks for having me. >> when you realize you've got it wrong and you change,

we should change our minds and not be so negative about the stocks. pier 1, think it's right. stay with us. coming up, best for the rest. cramer has been offering up the best stocks for all of 2013. and tonight he's taking to the skies. it's a group of stocks that's been flying this year, but which ones will continue to the stratosphere? huh...fifteen minutes could save you fifteen percent or more on car insurance. mmmhmmm...everybody knows that.

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even after the market hit a new all-time high yesterday, you know that i think we could be in for a rough time, as the focus now switches to washington, there's a possibility of a government shutdown in a few short weeks. we're about to head into one of these tougher periods for stocks that really has been -- looks like it, by the way. it's usually objective. we're also heading toward the end of 2013. that means we've just about reached the moment when the best performing stocks out there are anointed by wall street money managers. it's a concept i've been talking about all week. it's about the mechanics of money management. at the end of every year, every hedge fund manager wants to show

their investors what they own. they don't want those investors to ask for the money back, these managers have to make sure their clients like what they see. that's why every fourth quarter they take any opportunities to buy the best performing stocks into weakness so that their investors will see that they're winners and think that they're geniuses and when they want to buy the stock it tends to drive that stock that much higher, supply and demand. so now since any decent hedge fund or mutual fund has to be diversified, i've been doing this by analysis, sector, sector. on monday i told you about the consumer names that i think will become anointed. these included netflix, best buy, game stop, did you see "grand theft auto" today? trip advisor. tuesday we did biotech, celgene, regeneron. yesterday we covered the nationals. now, it's time to look at the industrials. this is my favorite of the four, people. it's a group that's up.

when you look at the top five performers in this space you can see this is sort of a catch-all category as there really isn't a single classic industrial in the group. the best is really a transport. it's delta air lines. that's up 8% year to date. isn't that remarkable? pitney bowes. back from the dead mail processing play. then there's boeing. quintessential aerospace and defense play that we like so much. then there's northrop grumman which is up big and lockheed martin. pretty much tied today. so let's take them down. the huge rally in delta is all about the consolidation of airline space. competition in the industry was really ruinous, leaking like clockwork to bankruptcies, multibankruptcies. there's still a decent shot that they'll be allowed to merge

depending on whether they win the suit. we're going to have that ruling by the end of the year. more consolidation would be good news for delta but even if they end up quashing the deal, delta will still be worth owning. thanks to the reduced competition it looks like 2013 will be one of delta's most profitable year ever. within the industry, delta is among the strongest players. it is among the highest levels of customer satisfaction in the business and they also consistently generate more revenue than their peers. plus delta has been able to dramatically cut fuel costs. even though fuel was up, remember. in fact, delta even bought an oil refinery to help lower its jet fuel costs. this is a big deal. fuel is a huge expense for the airlines. sometimes it can be as much as 40%. the company is now taking eight to ten new aircraft a month. they'll allow them to retire gas guzzling planes. perhaps most important of all, delta's aggressively paying down debt.

in 2009 they had an astounding $17 billion on the balance sheet. by the end of the year its plan to get down to $10 billion. it's a clean story. the interest rates can keep on going. delta rates is eight times next year's earnings. they don't like the airlines. next up is pitney bowes. the stock has come roaring back. come on. e-mail. that's taken a lot of share. pitney bowes used to sell the hardware and software that allows businesses to print and send huge quantities of snail mail. then they turned themselves red. last year the company appointed a new ceo. he's putting his money where his mouth is having plunked down a million bucks of his own money. new marketing chief. he was a rock star at ibm.

this team has breathed new life into the company. pitney bowes business still a cash cow. more crucial, they're focusing on new growth areas, digital commerce, locational intelligence and logistics. plus this last july pitney bowes sold out and turned around and retired $375 million of debt. the others have been backing off and the market has been very kind to turnaround stories of late. last but not least we have the three musketeers. three aerospace and defense plays that i like including most importantly cramer fave boeing, northrop grumman and lockheed martin. what more can i say about boeing? despite the delays in the dream

liner, demand is so strong that the company is so strong he has a backlog that runs to 2020. that's right this is the only business i know that can possibly lay out a 20-year plan with any credibility. both has been ramping up more fuel-efficient planes. the airlines can't get enough of it. meanwhile on the defense side they've cut $3 million in its annual costs and its stock is running up. 12% growth rate. do not forget they're also being very tough on their suppliers, getting some costs out that way too. who doesn't want to sell into boeing? how about lockheed martin and northrop grumman. they fight about the sequester. but they come back with a vengeance. turned out to be not a big deal. they were able to cut costs and diversify. i think they're diversified to come up with it. they can't come up with the budget. lockheed martin and northrop grumman are lean, mean fighting machines. lockheed martin. they almost got to buy back a quarter of its shares.

a quarter of the shares could be taken off the market by 2015. that's one of the most aggressive buybacks in the world. these stocks have been roaring for most of the year. they're exactly the kind of names i'd expect as be headed into 2013. particularly boeing. here's the bottom line. they'll buy up the year's best performers. that means you should try to pick up some delta. write these down. these are the best ones of the week. delta, boeing, northrop grumman, and lockheed martin into weakness going forward, and for a turnaround.. we need to go to bob. >> caller: hi. >> how are you? >> caller: i'm doing great. boo-yah. how are you? >> federal realty. they own the mall. he said it's great.

not as big as the flower producer. what's up? >> caller: i've been watching -- i've been looking for information on tho, thor industries. >> ooh, i like that company. >> caller: they have three dates on the quarterly report. >> the quarterly report is going to be on the 25th. it's next week. and this is recreational vehicles. our favorite one has been polaris, just so you know. that's scott wein. he's a buddy. he's a big guy too. can i go to john in texas, please, john? >> caller: yes, jim. this is a&m. i'm in at 3.35. is it a sell? >> no. it's not my favorite. i like it, but navios maritime is a winner too. here's what i do. when you get the exact double you take off half and then you do not touch navios maritime because you know why? you'll be playing with the ka-ching ka-ching house money.

finally, a chance to game the big boys, and if you can't beat them join 'em-style strategy the clock begins right now. you've got the consumer names, biotechs, financials. today i give you the industrials. boeing, dal, lmt. lucky strike with lockheed martin and northrop grumman. i'd grab some. particularly grab some b-17. "lightning round" coming up next.

"lightning round" is sponsored by td ameritrade. it is time for the lightning round. >> buy, buy, buy. >> sell, sell, sell.

play to this sound and the lightning round is over. >> are you ready skee-daddy? the "lightning round." let's start with drew in ohio. drew. >> caller: hey, cramer, boo-yah. >> boo-yah. >> caller: hey, i want to know what you think about royal caribbean. >> ah, man, they took a lot of share from carnival cruise because of the accidents. i like it. the management there is excellent. let's go to elizabeth in west virginia. elizabeth. >> caller: hi, there. >> hi. >> caller: thanks very much. i'm looking for an affordable stock and my son is impressed with the chase 2 interactive software games. would you recommend this stock? >> you know what? yes. he's really pulled it off and done a great job. you know what this reminds me of? lgf. everyone thought it was done. "hunger games" had come out. it could go much higher. let's go to joel in new york. joel. >> caller: boo-yah, jim.

this is joel from fayetteville, new york. i'm the jealous husband. i wanted to ask you advice on keycorp. >> i had to do a little ring the register. that company does not do well with the yield curve as it is even though it's got a terrific ceo. let's go to marsha in nevada. >> caller: yes. thank you, jim. i'm really interested in clzx. do you buy, sell? >> i was going over it, where we should take the double and go so to speak, because we did recommend it dramatically lower, and ken assures me that the actual stuff in the pipe is so good that we should not tell people to sell. we say hold on celldex. let's take warren in north carolina. hey, warren. >> caller: beast of the east from wilmington here. how are you doing? >> beast of the east. >> caller: boo-yah, boo-yah. i read your book. >> thank you. >> caller: it's great read.

the foray book -- >> i we've got a new one coming up in january. go ahead. >> caller: i'm calling about xone. >> that's a 3-d play. remember how we rank them. stratus first, ddd and then xone. speculation only, people. that, ladies and gentlemen, is the conclusion of the "lightning round." the lightning round is sponsored by td ameritrade. [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade.

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regular viewers know i'm a fan of casino stocks which are red hot, thanks to china, which should help fuel the growth of macau. monday when i got a call from dennis in my home state of new jersey, the maker of games and gaming systems for casinos, i was intrigued. i told dennis that i would take a closer look. i like the gaming equipment business. the company made a very smart move last year when it bought double down, a social gaming play that offers real online gambling in the state of new

jersey, one of the only states that's legal. as well as casino-style games where no money is at stake on facebook. we are going to talk to patti hart. she's the ceo of international game technology. miss hart, welcome to "mad money." >> i'm glad to be here. greetings from las vegas. >> excellent. i know nevada and new jersey are two states that are at -- let's say the forefront of gaming on our handhelds, perhaps. could you give me the state of play where igt is within that? >> yeah. igt is fortunate in that we have now ten years of experience in the online real money wagering business outside the united states, most recently in canada. so we are prepared for the opening of new jersey and frankly very excited to be part of the first state in the united states that will move to online gambling, slot-style gambling online.

and nevada coming quickly behind it, but a poker-only kind of business model in nevada. >> can you explain how everybody makes money in jersey, how chris christie will make money as our governor, how you guys will make money, the casinos will make money and how the patrons will make money? >> yeah. so everybody, you know, has a little bit different part of the value chain in the online space. i mean obviously the states make money through the taxation of gaming win and gaming revenues, which is great for all states in the united states, and the operators will make money and will take a part of the revenue from the operators based on the distribution of our content through their custom platforms that they take to market. >> one of the things that confused me is i'm trying to understand the geography of it. legal in jersey means i can't do it in pennsylvania and get into jersey or it means i have to do it in the state of jersey? >> it means that you do it in

the states where it's legal. yes. so you do have to be a resident in those states. and i think new jersey is -- i know your stomping grounds, so i'm sure you're very proud, jim, that they're leading the way, right? they're breaking the ice in the united states in online gambling, long overdue. >> governor christie is trying to find ways to get revenue and cut taxes. miss hart, one of the things i'm trying to understand is the analysts seem very trapped by what i call the four walls of the brick and mortar casino industry. when i look at it and double down and listen to what you're saying about new jersey, this is more of an internet play. at a certain point, when will it flip and be obvious to everyone that it's an internet play with a legacy business that's a cash cow? >> well, i think that in many cases, many analysts, many investors have already flipped. we now have been operating double down, which is our social

casino where you're not playing for real money for about 18 months, and that business coming out of the third quarter is kind of $240 to $250 million run rate revenue business. it's a significant business, growing year on year about 100% actually. so in addition to the real money gaming that you're finding in new jersey, and soon to come here in nevada, the social gaming, the social casino-style gaming is growing very rapidly. in the u.s. and around the world. >> well, before it came out, i was playing -- we were looking at the site on facebook. we were looking at yours versus zynga's, which is your competitor. i know you passed zynga on facebook. it seems like zynga opted for the -- let's call it the obtrusive ad model. you were more of the social model where if i referred people to you i get paid. is that the differential point between the two of you? >> yeah. i would say the real differentiation, jim, with our model of double down is our content. we really have taken the content that is tried and true from our game library that you can see in

every casino around the world, and the content, the math models, the art, the graphics, the volatility that we've built in, and that's what customers really want. they want an authentic vegas experience in the social casino, and that's been the real difference. our monetization rates are, you know, significantly higher, kind of 40-cent average revenue per daily active user, significantly higher than in the traditional social gaming area. >> i looked at avatar, the new game of yours, and it reminds me that maybe you're more of a hit-driven business than i realized, in terms of placement driven. >> yeah. i think generally speaking we have a number of segments of our business, and i think that business that is branded with games like avatar, next week we'll launch bridesmaids and back to the future, you know, that's a very important part of our business because it's brands that people know and love.

we're fortunate enough at igt to have in conjunction with sony created the most successful slot machine in history through the "wheel of fortune," but then there are significant other titles that we own and drive ourselves, whether it's wolf run or mystical mermaids, that customers come back to time and time again. so i think it actually is a combination of not just hits but it's hits and constant reliable content with math that's interesting. >> when you do these, i know you have the canon deal and the illinois deal, can you give me a sense on how the casinos in general are doing? i know the new ones are probably good. the new jersey casinos are not doing that well. i know you have a consumer confidence. there's a notion of how the consumer's doing versus your revenues. >> that's exactly right. i think one of the things -- first of all, our casino operators are generally doing very well. they're great customers, they're healthy businesses. you know, we're going through a

cycle, i think, from a consumer confidence perspective on spending in some of the casinos. there's been a lot of expansion in the casino industry in the last ten years, so i would say generally there's more people gambling in the united states, certainly gambling internationally, and we continue to see the growth there. so i would say generally healthy businesses, nice cash generating businesses as you know. but there are pockets, as you know, in new jersey and in other places. but the expansion in illinois has been terrific for us and for the industry because it's a different model. it's not a traditional bricks and mortar casino business, but it's more of a route business where there's two and three machines in each location instead of one large location, and it's a different model and i think it's a model that players are embracing. looking for that gaming opportunity that's just down the street or around the corner. >> well, miss hart, thank you so much for watching the show, for coming on the show. i think you have a great story. i really appreciate it.

that's patti hart, ceo of igt. thank you so much. >> thank you. >> i want you to read some of the analyst reports and contrast it with what miss hart had said. they're stuck on the idea that it's a plain old casino company. they don't have kids, they're not on facebook or they're not the gambling type. this is a good story. patti hart, ceo of igt. stay with cramer. this was the hardest decision i've ever had to make. jim, i adore the pool at your hotel. anna, your hotels have wondrous waffle bars. ryan, your hotels' robes are fabulous. i have twelve of them.

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sometimes the market has no idea, literally no idea what to do, and this is one of those times. first, we have collectively decided that the fed is all powerful, right? that's what we decided yesterday, because it got the yield on the ten year down to 2.5%. especially they delivered only inline earnings. didn't the fed with that press conference avert a recession? why do we need these stocks? so a consumer packaged goods company like conagra, did what it reported it was going to do nine days ago gets clobbered, going down another dollar. why not? who needs an underperforming food company when the fed green lighted an economic expansion. who needs slim jims when we can buy stocks that make cabinets and washing machines? stock has been eviscerated.

who need's cheerios when we can buy a railroad stock? isn't that what the fed told us to do? won't that soar? mcdonald's gives you a nice 5% dividend boost, but who wants a fast food restaurant that does well on harder times when we can buy a real estate investment trust company like federal realty. wait a second. as much as everyone seems to believe all is better because the fed decided to fix things yesterday, what do we do with companies we know aren't having good quarters but could be saved the quarter after. i don't think so. which is why the market has sold down the stocks of the homebuilders the day after it took them up. again, this looks like this and then the next day it's -- because we know that the fed is not as powerful as the market says. but we also know off of today's previous home sales announcement that while the numbers were at a six-year high, the commentary

from what a lot of people feels is a house organization for realtors, it was incredibly downbeat, with the chief economist lawrence jeune calling it the last hurrah and saying the market may be experiencing a temporary peak. boy, i'll tell you i didn't find that reassuring. the fed is making things easy again. that's terrific for traffic and spending, right? i mean they whacked it for a buck 39. plus it's incredibly hard to figure out what to do with financials. they're going up because they do better in a rising rate environment but now we have a falling rate environment. so we have to sell so much because of the fed's actions? regional banks go down and big insurers like prudential and national get killed? one of the best performers for the year. they all got crushed. wait a second, though. travelers catches an upgrade and flies up a dollar. what do we do. buy, sell, buy, sell. at moments like these, listen up.

i've been there. moments like these, i think it's helpful to remind people that you want to buy companies that aren't impacted by this vortex at all, companies like the big industrial companies, the enterprises the fed doesn't control with its tapering or lack thereof. you want to buy stocks of united technologies and 3-m. you want to buy emerson electric, stocks like boeing and honeywell. only buy the fed-related stocks if you're certain they're going to blow away the numbers here. and now because, no, the market will not look through this bad set of earnings. it will sell off disappointers. you know why? because it always does. in the end a lot of people reverse field, a lot of people make mistakes and lots of people have no idea what they're doing because they haven't been around long enough. relax. take a breath. recognize that if you knew a company was doing poorly right now, it will not be saved by what the fed did yesterday when it reports.

after yesterday's big run, those companies are sells. but the stocks that are doing well, if they're down because of the silly rotation, those are the ones to buy. stick with cramer.

okay. i listened to alex smith like you did from pier 1. i think they're going to turn it around. that stock was an overreaction. speaking of overreactions i thought disney was an overreaction. like i said, there's always a bull market somewhere. i'm jim cramer, and i'll see you tomorrow. >> narrator: in this episode of "american greed: the fugitives" -- money manager spiro germenis has charm galore. >> he was very intelligent, very good-looking. >> narrator: but now he's gone. >> he was just the type of guy that -- i don't know. we all seemed to like him a lot. >> narrator: germenis' investment fund, oracle evolution, appears to work miracles, with market-beating returns. >> i was telling my friends about it. i said, "look at this. look at what this guy's doing. my god." >> narrator: what this guy is doing, the fbi says, is ripping off his investors. many of them are retirees, and he spares no one.